How to Talk to Your Clients About Life Insurance
Choosing a life insurance policy is a very personal endeavor for most consumers, and one of the hardest to approach for many agents. No one is excited to talk about their death, and there is a lot of misinformation amongst consumers in regards to life insurance. Over half of consumers are unsure benefits from insurance are not taxable, and many don’t believe cash value from permanent life insurance can be used to help fund college educations, supplement retirement income or meet other financial needs.
A life insurance agent needs to believe in the product, be enthusiastic about selling, demonstrate resilience, and be an effective communicator. It can be difficult to sell life insurance to a person who, in all likelihood, won’t see the payoff themselves. It’s essential that agents are able to relay life insurance information in a way in which your prospects not only understand but also see the benefit in purchasing. Here are tips on how to approach insurance with your clients.
Educate Your Customers on Life Insurance
The first stepping in selling life insurance is convincing your prospect that they need what you are selling. If you can’t get someone to believe in the need for life insurance, you won’t make a sale, regardless of the quality of your product pitch. Educating clients and prospects about life insurance is a tremendous opportunity and will go a long way in convincing a prospect that they need your product.
You might have heard the sayings, ‘save for a rainy day,’ or ‘invest for your future,’ both are applicable for selling life insurance. As part of educating your customers it is helpful to get them to think about the future, and what will happen to their family after they have gone. You can start by asking these questions:
- How will your family support themselves without your income?
- Will your family suffer financially if they have to pay for your end-of-life arrangements?
- Will you benefit from the peace of mind that comes with the knowledge that your loved ones will not be burdened?
Understand A Customer’s Motivation
With a variety of life insurance policies available, it is important to understand a customer’s motivation to know which product and sales approach will be most effective. The reason most people purchase life insurance is because they want to take care of their loved ones, or, at a minimum, cover their end-of-life plans for when they pass away. While the motivation for purchase might be fairly universal, there are also many differences of which to be aware. Some customers are motivated by the best value over time, preferring to pay a premium on an annual basis, others will prefer a monthly payment plan that works with their income flow.
Never underestimate, or overestimate, how much a customer knows about life insurance. Communicating clearly and effectively will help you know how to best serve your customer. While some customers will expect their agent to provide a wealth of information and help guide them through the complex decision-making process, others will become overloaded and want their agent to simplify their decision. It is important for agents to recognize what their customer best responds to and adapt accordingly.
Focus on the Future
Deciding on how much life insurance is needed can be more complicated than a person initially realizes. Help your customer brainstorm the less-thought-of-expenses that come along with life insurance. Most people plan to cover the cost of their house, or have a certain monetary figure in mind, but remind them about other expenses they won’t be able to contribute to, such as their spouse’s retirement funds or a child’s future wedding.
Given how tight money is for many people, it can be hard to get customers to think about their future. While nearly 95 percent of people in a recent survey said the ability to save enough to retire comfortably was a top priority when planning for the financial future, a little less than half of those respondents, with a financial professional, have permanent life insurance. The key is to help customers understand how financial decisions they make today will affect their future wealth. Once customers understand the value of long-term investments, they are ready to invest in life insurance.
Confidence plays a large part in an agent’s ability to deliver the right message to the person. Insurance agents need to be able to cater their messages to their audience. ASPECT Management is there to help agents with programs tailored to them. We combine best-of-breed